It was one of the first tanks designed to use an overlapping/interleaved road wheel suspension system (known as the Schachtellaufwerk), which had been in use with German military half-tracks like the Sd.Kfz.

11 as early as 1934; and had an advantage of having a shorter ground contact length for improved steering with the tank's weight distributed over larger-diameter road wheels, which lasted longer and provided a smoother ride over rough terrain.

By 14 December 1938, Daimler Benz completed a design project using the HL 116, which developed 300 metric hp.

[8] Daimler Benz having been forced to accept untested components in their Panzer III Ausf E, gained permission to pursue their design without interference from Wa Pruef 6.

This allowed them to adopt leaf springs as torsion bars held the following key disadvantages: wasted space inside vehicle, poor access to repair and replace torsion bars, instability as a weapons platform due to the individual sprung wheels and the lack of a satisfactory shock absorber design addressing the instability.

Design of a diesel motor was deemed necessary to utilize strategic fuel specifically demanded by Hitler.

Utilizing the already developed tank, studies were being conducted on a new design with thicker armour and heavier armament.